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Federal Court Ruling on Corporate Transparency Act, BOI Reporting

March 05, 2024

Late last week, a federal district court ruled in the case of National Small Business United v. Yellen. The case was filed by the National Small Business Association, and the court ruled the Corporate Transparency Act (CTA) (which includes the Beneficial Ownership Information [BOI] reporting requirement) unconstitutional.   

The U.S. Treasury is likely to appeal the ruling; therefore, the case is likely to continue through the judicial process for an indeterminate amount of time. The ruling does not suspend the requirement for small businesses to comply with the BOI reporting requirements of the CTA. Nor does it change the fact that Washington State has issued no guidance on whether CPAs can fill out BOI reporting forms for clients.   

The profession, including AICPA, WSCPA and other state societies, continues to push for suspension of the BOI reporting rule.